What 'The Cloud' Actually Means

The plain definition

"The cloud" is just computers somewhere else that you reach over the internet.

That's it. When something is "in the cloud," it means it lives on a company's servers in a data center, not on the computer sitting on your desk. The word sounds vague and high-tech. The reality is pretty ordinary.

You're already using it

If you use Gmail, Google Docs, Dropbox, QuickBooks Online, or just about any app you log into through a web browser, you're using the cloud. Your email and files aren't really "on your computer." They're on someone else's, and your computer is showing you a window into them.

Why so many tools work this way

• Reach it anywhere. Your laptop, your phone, a borrowed computer - same data, because it isn't tied to one machine.
• No server to babysit. You don't buy, run, or fix the computer it lives on. The provider does.
• Updates and backups happen for you. The software stays current and your data is copied automatically, usually.
• Pay as you go. Monthly fees instead of a big upfront purchase.

For a small business with no IT staff, that's a lot of weight someone else is carrying.

The trade-offs

The cloud isn't automatically the right answer for everything.

• You need internet. No connection, no access.
• You're trusting someone else with your data. Their security becomes your security.
• The cost never ends. Monthly fees go on as long as you use the tool.
• Leaving can be work. Getting all your data back out, in a usable form, isn't always easy.

"On your own computer" still exists

The opposite of the cloud is software and files that live on your own machine or a server in your office. You control it fully, but you're also responsible for it - backups, updates, repairs, and all.

For most small businesses, cloud tools are the simpler choice. Just go in knowing what you're handing off.

The bottom line

The cloud is someone else's computer, reached over the internet. It trades control and a monthly fee for convenience and not having to be your own IT department.

For most small businesses that's a good trade. Knowing what the trade actually is helps you choose well.